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Innofactor Plc — Interim / Quarterly Report 2013
Apr 30, 2013
3319_rns_2013-04-30_9c6717d1-f245-4e8b-88b0-6fd840ba3b28.pdf
Interim / Quarterly Report
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INNOFACTOR
INTERIM REPORT Q1/2013
1 (23)
Innofactor Plc Stock Exchange Release April 30, 2013, at 8:30 Finnish time
Innofactor Plc's Interim Report for January 1–March 31, 2013 (IFRS)
Summary
| mo. 1–3 /2013 | mo. 1–3 /2012 | Change | mo. 1–12 /2012 | |
|---|---|---|---|---|
| Net sales, EUR thousand | 5,541 | 3,972 | +39.5% | 18,818 |
| Growth of net sales | +39.5% | +0.7% | +9.4% | |
| Operating profit before depreciation and amortization (EBITDA), EUR thousand | 584 | -209 | +379.4% | 1,215 |
| percentage of net sales | 10.5% | -5.3% | 6.5% | |
| Operating profit/loss (EBIT), EUR thousand | 424 | -347 | +222.2% | 620 |
| percentage of net sales | 7.7% | -8.7% | 3.3% | |
| Earnings before taxes, EUR thousand | 412 | -347 | 218.8% | 591 |
| percentage of net sales | 7.4% | -8.7% | 3.1% | |
| Earnings, EUR thousand | 310 | -344 | +190.2% | 449 |
| percentage of net sales | 5.6% | -8.7% | 2.4% | |
| Net gearing | -10.0% | -11.8% | 5.4% | |
| Equity ratio | 69.4% | 79.0% | 66.1% | |
| Personnel on average during the review period | 198 | 183 | +8.2% | 189 |
| Earnings per share (EUR) | 0.0104 | -0.0118 | +188.5% | 0.0150 |
Innofactor's net sales in 2013 are expected to be about EUR 24 million (2012: EUR 18,818 thousand). Operating profit before depreciation and amortization (EBITDA) in 2013 is expected to be about EUR 2 million (2012: EUR 1,215 thousand).
The figures in this Interim Report have not been audited.
Reporting
Innofactor operates on a single segment, offering software, systems and related services.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
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CEO Sami Ensio's review
On the first quarter of 2013, Innofactor continued profitable growth in accordance with its strategy. The growth of net sales was at 39.5 percent and EBITDA was 10.5 percent. Measured in net sales (EUR 5.5 million) and EBITDA (EUR 0.6 million), this was the best first quarter in Innofactor's history.
Innofactor expects 2013 to be a year of profitable growth. Our personnel is committed and motivated to work even harder for our customers, which can also be seen in the well-developing personnel satisfaction.
Innofactor's cash funds grew significantly during the review period. In the review period, the company's cash funds grew by EUR 1.9 million which is about EUR 1 million more than the comparable review period last year. Positive cash flow development is important for Innofactor's strategy, because it gives the company a stronger position as an active player in the field when it comes to acquisitions.
Innofactor continues to actively seek potential strategic partnerships in Finland, Denmark and other Nordic Countries. The group will seek growth, which can be organic or based on mergers or acquisitions.
Market outlook and business environment
Due to the long-standing uncertainties in economic situation, it is challenging to make a reliable estimate on the development of the IT market in the near future. According to research companies monitoring the IT market, the IT service markets grew globally about 1–2 percent in 2012 and they are expected to grow about 3–5 percent in 2013. The growth of software market in 2012–2013 is estimated to be about one percentage point faster, that is, 4–6 percent in 2013.
The IT market is experiencing a clear turning point. One of the major trends is the consumerization of information technology: an increasingly larger share of the IT purchases made by companies is based on the requirements of individuals, that is, the consumer market. Commercial clients tend to purchase software that can be used on phones, tablets and computers. Another trend is the ability of public clouds to offer software in a scalable and global form to a wide range of end users and for all devices, including mobile phones.
Innofactor has made a strategic choice by focusing on solutions that use Microsoft technology. Innofactor believes that Microsoft is a strong player in the IT market change: it holds the leading position in the business software market, a significant position in the consumer software market, and invests heavily in mobile devices and cloud technologies.
Innofactor has selected as its application areas those areas where Microsoft's growth and, correspondingly, its partners' growth has exceeded manifold the growth of general global IT
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
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service and software markets. For example, in 2012, Microsoft repeatedly reported annual growth figures of over 30 percent in the sales of Dynamics CRM solutions and Microsoft SQL Server Premium servers (used in Microsoft-based BI solutions), and annual growth figures of over 10 percent in the sales of SharePoint, Lync and Exchange solutions. The above-mentioned Microsoft solution areas, which are growing significantly faster than other IT markets, form a significant part of Innofactor's business operations.
Additionally, the publishing of the Windows 8 operating system in October 2012 is significant for the Microsoft ecosystem and it is believed to strengthen Microsoft's competitiveness.
The company feels that for companies like Innofactor, which is strongly committed to Microsoft, this development creates growing global markets in the long term both as a traditional system integrator locally in the Nordic Countries and as a provider of cloud and mobile solutions globally.
Companies strongly committed to Microsoft in the Nordic Countries are mainly small companies. Innofactor believes that size give a competitive edge for a company also in the Microsoft ecosystem, making mergers of small companies focused on Microsoft solutions probable. This gives Innofactor opportunities to grow.
Net sales
Innofactor's net sales on January 1–March 31, 2013, were EUR 5,541 thousand (2012: 3,972), which shows an increase of 39.5 percent.
Result development
Innofactor's operating profit before depreciation and amortization (EBITDA) on January 1–March 31, 2013, was EUR 584 thousand (2012: -209), which shows an increase of 379.4 percent. EBITDA accounted for 10.5 percent of the net sales (2012: -5.3%).
Innofactor's operating profit on January 1–March 31, 2013, was EUR 424 thousand (2012: -347), which shows an increase of 222.2 percent. Operating profit accounted for 7.7 percent of the net sales (2012: -8.7%).
Financing and investments
Innofactor's balance sheet total at the end of the review period was EUR 22,351 thousand (2012: 18,627). The group's liquid assets totaled EUR 2,533 thousand (2012: 1,549), consisting totally of cash funds.
The operating cash flow in the review period of January 1–March 31, 2013, was EUR 2,286 thousand (2012: 841). The investment cash flow was EUR -71 thousand (2012: -107).
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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The equity ratio at the end of the review period was 69.4 percent (2012: 79.0%) and net gearing was -10.0 percent (2012: -11.8%).
At the end of the review period, the company had EUR 250 thousand in current interest bearing liabilities (2012: 0) and EUR 888 thousand in long term interest bearing liabilities (2012: 0).
The return on investment on January 1–March 31, 2013, was 11.3 percent (2012: -10.6%).
The return on equity on January 1–March 31, 2013, was 8.9 percent (2012: -10.6%).
The non-current assets in Innofactor's balance sheet at the end of the review period were EUR 12,581 thousand in total and consisted of the following items:
- Tangible assets EUR 442 thousand
- Goodwill value EUR 2,834 thousand
- Other intangible assets EUR 1,614 thousand
- Deferred tax assets EUR 7,691 thousand
Innofactor's gross investments in tangible assets in the review period of January 1–March 31, 2013, were EUR 71 thousand (2012: 107), consisting of normal additional and replacement investments required by growth.
According to the impairment tests carried out, there are no impairments. The write-offs on intangible assets were EUR 84 thousand (2012: 81).
Research and product development
Innofactor's research and development costs recognized in the profit and loss statement for January 1–March 31, 2013, were EUR 512 thousand (2012: 692), which accounts for 9.2 percent of the net sales (2012: 17.4%).
Personnel
The average number of personnel at Innofactor during January 1–March 31, 2013, was 198 (2012: 183), an increase of 8.2 percent.
At the end of the review period, the number of personnel was 204 (2012: 184), which shows an increase of 10.9 percent.
At the end of the review period, the average age among personnel was 35.8 years (2012: 36.8). Of the personnel, 43.0 percent (2012: 38.7%) had a Master's Degree, 33.3 percent (2012: 37.0%) had a Bachelor's Degree or were studying for a Master's Degree, and 23.7 percent (2012: 24.3%) had
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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some other degree. Women accounted for 22 percent of the personnel and men for 78 percent (2012: 23% and 77% respectively).
Business operations
On January 1–March 31, 2013, Innofactor's business operations were focused on Finland and Denmark. On January 1–March 31, 2013, about 80 percent of the net sales came from Finland and about 20 percent from Denmark.
Of the net sales on January 1–March 31, 2013, about 1/3 came from commercial clients and about 2/3 from government and third sector clients.
Innofactor's net sales in the review period of January 1–March 31, 2013, was derived from the following sources:
- about 63% from systems integrator services (including system delivery projects and smaller changes and further development);
- about 7% from licenses, of which the share of licensing income to third parties was about 1%;
- about 30% from recurring service contracts (incl. maintenance agreements, SaaS, cloud and hosting services).
Innofactor’s 10 largest clients accounted for about 24 percent of the net sales during the review period January 1–March 31, 2013.
Other events in the review period
On March 26, 2013, the Annual General Meeting of Innofactor Plc resolved to adopt the accounts and the group's Financial Statement for the financial period that ended on December 31, 2012, and granted the members of the Board of Directors and the Chief Executive Officer discharge from liability for the financial period that ended on December 31, 2012.
The General Meeting decided, in accordance with the proposal of the Board of Directors, that no dividend will be paid for the financial period January 1–December 31, 2012.
The General Meeting decided to change the Section 4 of the Articles of Association as follows:
"The company shall have a Board of Directors, which comprises at a minimum of four (4) and at a maximum of eight (8) members. The term of office of the members of the Board of Directors shall end at the close of the first Annual General Meeting following their election.
The company shall have a CEO who is elected by the Board of Directors."
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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The General Meeting decided that the Chairman of the Board of Directors shall be paid a fee totaling EUR 36,000 per year and the other members of the Board of Directors shall be paid a fee totaling EUR 24,000 per year. No separate fees for meetings shall be paid. Half of the fee (50%) shall be paid monthly in cash and the other half (50%) as shares of Innofactor Plc. The shares shall be handed over to the members of the Board of Directors and, if necessary, shall be acquired from public trading directly on behalf of the members within two weeks of publishing the Interim Report of Innofactor Plc for January 1–March 31, 2013. Innofactor Plc requires the members of the Board of Directors to keep the shares, which they have received as part of the fees, for the duration of their membership in the Board of Directors.
The General Meeting decided that the number of Board members is six. The following persons were elected as members of the Board of Directors: Sami Ensio, Juha Koponen, Pyry Lautsuo, Jukka Mäkinen, Ilari Nurmi, and Pekka Puolakka. At their organizing meeting held immediately after the General Meeting, the Board of Directors elected Pyry Lautsuo as the Chairman of the Board.
Ernst & Young Oy, an auditing firm authorized by the Central Chamber of Commerce, was elected as the auditor for the company. Ernst & Young Oy has stated that it will appoint Juha Hilmola, Authorized Public Accountant, as the auditor with principal responsibility. It was decided that the auditing fee shall be paid according to a reasonable invoice.
Share and shareowners
At the end of the review period, Innofactor Plc’s share capital was EUR 2,100,000.00 and the total number of shares was 30,165,900, of which 433,000 shares were in the company’s possession. Innofactor Plc has one series of shares. Each share is entitled to one vote.
On January 1–March 31, 2013, the highest price of the company share was EUR 0.56 (2012: EUR 0.65), the lowest price was EUR 0.48 (2012: EUR 0.58), and the average* price was EUR 0.52 (2012: EUR 0.61).
The closing price for the review period on March 31, 2013, was EUR 0.51 (2012: EUR 0.58).
- The average share price was calculated by taking the total value of share trading in the stock exchange on the said period and dividing this by the number of shares traded in the stock exchange on the said period.
In public trading on January 1–March 31, 2013, a total of 783,198 shares were traded (2012: 424,646 shares), which corresponds to 2.6 percent (2012: 1.5%) of the average number of shares on the said period. On January 1–March 31, 2013, there were 29,809,378* shares on the average (2012: 29,281,670). The share trade increased by 84.4 percent compared to the corresponding period in 2012.
- The average number of shares does not include shares in the company’s possession.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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The market value of the share capital, excluding the shares in the company's possession, on March 31, 2013, at the closing price of the review period, EUR 0.51, was EUR 15,164 thousand (2012: 17,496), which shows a decrease of 13.3 percent.
On March 31, 2013, the company had 11,686 shareowners (2012: 12,176), including administrative registers. The Board of Directors has the following authorizations:
- Until June 30, 2014, on a share issue and granting of special rights entitling to shares, concerning a maximum of 8,000,000 new shares, of which none has been used (decided on General Meetings of March 27, 2012, and August 27, 2012).
- Until June 30, 2014, on a transfer of company shares in the company's possession, concerning a maximum of 1,000,000 shares, of which none has been used (decided on General Meetings of March 27, 2012, and August 27, 2012).
Innofactor Plc issued no flagging announcements during the review period.
Board of Directors:
- Pyry Lautsuo, 46,964 shares, 0.16%
- Sami Ensio 7,400,000 shares, 24.52%
- Sami Ensio 5,226,240 shares, 17.32%
- minor under guardianship, 724,588 shares, 2.40%
- minor under guardianship, 724,586 shares, 2.40%
- minor under guardianship, 724,586 shares, 2.40%
- Juha Koponen, 31,309 shares, 0.10%
- Jukka Mäkinen, 28,183 shares, 0.09%
- Ilari Nurmi, 8,020 shares, 0.02%
- Pekka Puolakka, 126,979 shares, 0.42%
- Hillside Ou, 105,670 shares, 0.35%
- Pekka Puolakka, 31,309 shares, 0.10%
CEO:
- Sami Ensio 7,400,000 shares, 24.52%
- Sami Ensio 5,226,240 shares, 17.32%
- minor under guardianship, 724,588 shares, 2.40%
- minor under guardianship, 724,586 shares, 2.40%
- minor under guardianship, 724,586 shares, 2.40%
Executive Board:
- Christian Andersen 0 shares, 0.0%
- Aino-Maija Gerdt, 180,000 shares, 0.60% (until March 22, 2013)
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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- Henrikki Hervonen, 133,880 shares, 0.44%
- Heikki Jekunen, 0 shares, 0.0% (as of March 11, 2013)
- Elina Jokinen, 0 shares, 0.0% (as of January 21, 2013)
- Mikko Karvinen, 100,000 shares, 0.33%
- Mikko Lampi, 1,045,543 shares, 3.47%
- Janne Martola, 100,000 shares, 0.33%
- Teemu Muukkonen, 507,468 shares, 1.68%
- Mikko Myllys, 176,981 shares, 0.59%
- Mika Nurmi, 139,553 shares, 0.46%
Auditors:
- Juha Hilmola, 0 shares, 0.0%
Own shares
The Extraordinary General Meeting of Innofactor Plc on August 27, 2012, accepted the Board of Directors' proposal to authorize the Board to decide on acquisition of own shares with following presumptions:
The Extraordinary General Meeting authorized the Board of Directors to decide on acquiring of a maximum of 3,000,000 shares in one or several parts with the company's own capital. The authorization entitles the Board to deviate from the shareholders' proportional shareholdings (directed acquisition). Shares will be acquired on the Nasdaq OMX Helsinki Ltd with the public trading on the market. The number of shares in the company's possession may be, at the maximum, one tenth (1/10) of the total number of shares in the company. The shares may be used to develop the capital structure, to widen the ownership base, in making a payment for an acquisition, or when the company buys property related to its business operations or as part of the incentive compensation plan, or to be otherwise invalidated or conveyed. In connection with the share repurchase, ordinary derivative, stock lending and other agreements may be made in the market in accordance with the laws and regulations. The authorization includes the right of the Board of Directors to decide on all other matters related to the acquisition of shares. The authorization will be valid until June 30, 2014.
At its meeting on August 27, 2012, the Board of Directors of Innofactor Plc decided to start the acquisition of the company's own shares. A maximum of 1,500,000 shares will be acquired, equaling approximately 4.97% of the total number of the company's shares. The decision is based on the authorization, given to the Board by the Extraordinary General Meeting on August 27, 2012, to acquire a maximum of 3,000,000 shares. The acquisition of own shares will start at the earliest on September 4, 2012, and will end on December 31, 2013, at the latest. The shares may be used to develop the capital structure, to widen the ownership base, in making a payment for an acquisition, or when the company buys property related to its business operations or as part of
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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the incentive compensation plan, or to be otherwise invalidated or conveyed. The shares will be acquired by using company's unrestricted equity, at the market price on the time of purchase, in the public trading maintained by NASDAQ OMX Helsinki Ltd, and in accordance with the NASDAQ OMX Helsinki Ltd and Euroclear Oy regulations and guidelines for acquisition of own shares.
On March 31, 2013, Innofactor Plc had in its possession 433,000 of its own shares that had been purchased at the average price of EUR 0.52 per share. The ownership of the company's share capital is 1.44%, which does not have a significant effect on the distribution of ownership or votes.
Management of the company
Innofactor Plc complies with the recommendations of the Corporate Governance Code 2010 for Finnish listed companies, published by the Securities Market Association.
At the General Meeting on March 26, 2013, the number of the members of the Board of Directors was confirmed to be six. The General Meeting decided to approve the proposal to re-elect Sami Ensio, Juha Koponen, Pyry Lautsuo, Jukka Mäkinen, and Pekka Puolakka as members of the Board of Directors and to elect Ilari Nurmi as a new member. The Board of Directors elected Pyry Lautsuo to continue as their Chairman.
The General Meeting approved the proposal to re-appoint Ernst & Young Oy, an auditing firm authorized by the Central Chamber of Commerce, as the auditor for the company, with Juha Hilmola, APA, as the main responsible auditor.
Innofactor has drawn up a separate Corporate Governance Statement for the financial period of 2012.
Innofactor Plc's entire Corporate Governance and statements are available on the company's web site at: http://www.innofactor.com/investors/corporate_governance
Short term risks and uncertainty factors
Innofactor's operations, finances and shares involve risks that may be significant for the company and its share value. These risks are assessed by the Board of Directors four times a year as part of the strategy and business planning process. The risks in their entirety are published in the Financial Statement and the Interim Reports only introduce changes in the short term risks.
Risks related to operations
There have been no significant changes in Innofactor's short-term operational risks and uncertainty factors during the review period nor can any be seen.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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Financial risks
There have been no significant changes in Innofactor's short-term financial risks and uncertainty factors during the review period nor can any be seen.
Risks related to shares
There have been no significant changes in Innofactor's short-term risks and uncertainty factors related to the shares during the review period nor can any be seen.
Acquisitions and changes in the group structure
No acquisitions or changes in the group structure were carried out during the review period.
Corporate environmental and social responsibility
Innofactor's operations are guided by the company's strategy, values, quality system, environmental policy, and legislation. The group is committed to operating profitably and increasing its net sales while taking into account the environmental effects.
Innofactor takes care of the well-being of its personnel by maintaining a stable, safe and communicative atmosphere and by building a reliable development path into the future.
In its operations, Innofactor adheres to the principles of sustainable development and the environmental guidelines of the Federation of Finnish Technology Industries. Through the solutions it has developed, the group has helped its customers to reach their environmental goals and contributed to the sustainable development of the society. Electronic case and document management solutions and eService solutions are examples of Innofactor's solutions that reduce adverse effects on the environment. The emissions trading systems provided for several European countries also contribute to the efforts to curb the climate change.
Innofactor strives to establish long-term cooperation with its clients and partners and thereby create networks in which complementary expertise produces new kinds of solutions. In accordance with its mission, the Group aims at offering its employees and partners an innovative and supportive environment in which they can continue to develop themselves.
Strategy
Innofactor provides its clients with software, systems and related services. Innofactor focuses on the supply of solutions for the Microsoft environment. Innofactor's clients are commercial and public organizations. Innofactor operates in Finland and Denmark and offers its solutions from
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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these to other countries. Innofactor strives to actively expand its operations in the Nordic Countries, which may happen either organically or through acquisitions. Additionally, Innofactor offers value-added components for Microsoft business solutions for global markets, utilizing several distribution channels.
Innofactor's mission is
- to help our clients offer their customers increasingly better services and improve their operations, and
- to provide our personnel and partners with an innovative and supportive environment in which they can continue to develop themselves.
Innofactor's vision is to become
-
1 provider of Microsoft solutions for commercial and public organizations in the Nordic Countries, and
-
1 provider of value-added components for Microsoft's business platforms globally.
Innofactor's strategy is to differentiate itself from the competitors as the leading provider focused in Microsoft solutions, and the most important strategic choices related to this are the following:
- Unique combination of Microsoft software product and system integrator businesses
- Focusing on the most important corporate clients and organizations in the target market
- Unique offering, containing critical Microsoft business solutions
- Providing value for customers' money by ensuring that the best people are delivering the best products and services
- Focusing on continuous service and long-term partnerships with clients
- Growing in the system integrator business in the Nordic Countries and globally in the software product business
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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Innofactor's goal is to grow profitably:
- Achieve an average annual growth of 30–40% in 2011–2015 through both organic growth and company acquisitions.
- Achieve an average annual operating profit of 10–15% before depreciation and amortization (EBITDA) in relation to the net sales in 2011–2015.
- Keep the cash flow positive and secure good financial standing in all situations.
Implementation of the strategy during the review period
The growth of Innofactor's net sales in the review period, 39.5%, was on the annual growth interval of 30–40% defined in the strategy. Innofactor's operating profit before depreciation and amortization (EBITDA) in relation to the net sales, 10.5%, was also on the interval of 10–15% defined in the strategy. Innofactor's cash flow in the review period was positive (cash flow was EUR 1.9 million) and the financial standing was secure (Net Gearing -10.0%).
Innofactor did not make any new acquisitions during the review period. During the review period, the Project and Portfolio Management business acquired from Tietotalo Infocenter Oy at the end of 2012 complemented Innofactor's Microsoft-based offering defined in the strategy.
Events after the review period
There have been no significant events in Innofactor after the review period.
Future outlook
Innofactor's net sales in 2013 are expected to be about EUR 24 million (2012: EUR 18,818 thousand). Operating profit before depreciation and amortization (EBITDA) in 2013 is expected to be about EUR 2 million (2012: EUR 1,215 thousand).
Espoo, April 30, 2013
INNOFACTOR PLC
Board of Directors
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
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Additional information:
CEO Sami Ensio, Innofactor Plc
Tel. +358 50 584 2029
[email protected]
Briefings concerning the Interim Report January 1–March 31, 2013
On April 30, 2013, at 9:00 Finnish time, Innofactor will hold a briefing concerning the Interim Report in Finnish for the media, investors and analysts at the company's premises at Keilaranta 19, Espoo. The result will be presented by CEO Sami Ensio and CFO Mikko Karvinen. The presentations of the briefing will be available on Innofactor's web site after the briefing.
We ask you to register for the briefing beforehand either by sending email to [email protected] or by phoning to +358 50 554 3832.
Innofactor will also hold a conference call in English for analysts, media and investors on April 30, 2013, at 16:00 Finnish time. Registrations to [email protected] at least one hour before the event.
Financial releases in 2013
The schedule for financial releases in 2013 is as follows:
July 16–July 29, 2013: Silent period
July 30, 2013, at 8:30 Finnish time: Interim Report for January–June
October 15–October 28, 2013: Silent period
October 29, 2013, at 8:30 Finnish time: Interim Report for January–September
Distribution:
NASDAQ OMX Helsinki
Main media
www.innofactor.com
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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Financial Statement summary and appendixes January 1–March 31, 2013 (IFRS)
Drafting principles
This Interim Report has been drafted in accordance with the IAS 34 Interim financial reporting standard. The Interim Report adheres to the same drafting principles and calculation methods as the last annual Financial Statement. The principles for calculating the key figures and the calculation formulas have not been changed and they have been presented in the Financial Report 2012.
Drafting a Financial Statement in accordance with the IFRS standards requires the management of Innofactor to use estimates and presuppositions, which affect the amounts of assets and debts at the time of drafting the balance sheet and the amounts of earnings and costs for the review period. Additionally, deliberation is needed in applying the drafting principles for a Financial Statement. As estimates and presuppositions are based on the views held at the time of drafting the statement, they contain risks and uncertainty factors. The actual figures may deviate from the estimates and presuppositions. The figures of the profit and loss statement and the balance sheet are figures for the group. The figures of the statement have been rounded, so the sum of individual figures may differ from the sum presented.
The figures in the Interim Report have not been audited.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
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Consolidated Profit and Loss Statement, IFRS
| EUR thousand | Jan 1–Mar 31, 2013 | Jan 1–Mar 31, 2012 | Jan 1–Dec 31, 2012 |
|---|---|---|---|
| Net sales | 5,541 | 3,972 | 18,818 |
| Other operating income | 12 | 0 | 33 |
| Materials (–) | -359 | -429 | -1,691 |
| Employee benefits/expenses (–) | -3,853 | -3,142 | -12,835 |
| Depreciations (–) | -160 | -138 | -595 |
| Other operating expenses (–) | -757 | -609 | -3,110 |
| Operating profit/loss | 424 | -347 | 620 |
| Financial income | 2 | 2 | 12 |
| Financial expenses (–) | -14 | -2 | -41 |
| Profit/loss before taxes | 412 | -347 | 591 |
| Income taxes | -102 | 3 | -142 |
| Profit/loss for the period | 310 | -344 | 449 |
| Total comprehensive income | 310 | -344 | 449 |
Earnings per share calculated from the result of parent company shareholders:
| Basic earnings per share (EUR) | 0.0104 | -0.0118 | 0.0150 |
|---|---|---|---|
| Diluted earnings per share (EUR) | * | * |
- The dilution effect has not been calculated, because the remaining Innofactor SW Oy warrant programs have no financial value after the business operations of the company have been sold.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
16 (23)
Consolidated Balance Sheet, IFRS
ASSETS
| EUR thousand | Mar 31, 2013 | Mar 31, 2012 | Dec 31, 2012 |
|---|---|---|---|
| Non-current assets | |||
| Tangible assets | 442 | 503 | 451 |
| Goodwill | 2,834 | 1,207 | 2,834 |
| Other intangible assets | 1,614 | 1,458 | 1,695 |
| Deferred tax assets | 7,691 | 7,895 | 7,767 |
| Non-current assets | 12,581 | 11,063 | 12,747 |
| Current assets | |||
| Trade and other receivables | 7,237 | 6,015 | 8,770 |
| Cash and cash equivalents | 2,533 | 1,549 | 656 |
| Current assets | 9,770 | 7,564 | 9,426 |
| TOTAL ASSETS | 22,351 | 18,627 | 22,173 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
17 (23)
SHAREHOLDERS' EQUITY AND LIABILITIES
| EUR thousand | Mar 31, 2013 | Mar 31, 2012 | Dec 31, 2012 |
|---|---|---|---|
| Shareholders' equity | |||
| Share capital | 2,100 | 2,100 | 2,100 |
| Share premium reserve | 72 | 72 | 72 |
| Other reserves (+/-) | 59 | 59 | 59 |
| Own shares | -211 | 0 | -129 |
| Fund for invested unrestricted equity | 8,834 | 8,834 | 8,834 |
| Retained earnings | 3,133 | 2,029 | 2,824 |
| Total shareholders' equity | 13,987 | 13,094 | 13,760 |
| Long term liabilities | |||
| Loans from financial institutions | 888 | 0 | 950 |
| Deferred tax liabilities | 503 | 417 | 510 |
| Long term liabilities total | 1,391 | 417 | 1,460 |
| Current liabilities | |||
| Loans from financial institutions | 250 | 0 | 443 |
| Trade and other payables | 6,723 | 5,117 | 6,510 |
| Current liabilities total | 6,973 | 5,117 | 6,953 |
| Liabilities total | 8,364 | 5,534 | 8,413 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 22,351 | 18,627 | 22,173 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
18 (23)
Statement of change in shareholders' equity, IFRS
| EUR thousand | Share capital | Share premium reserve | Other reserves | Fund for invested unrestricted equity | Own shares | Retained earnings | Total shareholders' equity |
|---|---|---|---|---|---|---|---|
| Shareholders' equity Jan 1, 2013 | 2,100 | 72 | 59 | 8,834 | -129 | 2,824 | 13,760 |
| Comprehensive income | |||||||
| Profit for the financial period | 310 | 310 | |||||
| Other items of comprehensive income: | |||||||
| Exchange differences | -1 | -1 | |||||
| Total comprehensive income | 0 | 0 | 0 | 0 | 0 | 309 | 309 |
| Transactions with owners | |||||||
| Purchase of own shares | -82 | -82 | |||||
| Transactions with owners in total | -82 | -82 | |||||
| Shareholders' equity Mar 31, 2013 | 2,100 | 72 | 59 | 8,834 | -211 | 3,133 | 13,987 |
| Shareholders' equity Jan 1, 2012 | 2,100 | 72 | 59 | 8,344 | 0 | 2,330 | 12,905 |
| Comprehensive income | |||||||
| Profit for the financial period | -344 | -344 | |||||
| Total comprehensive income | 0 | 0 | 0 | 0 | 0 | -344 | -344 |
| Share issue | 490 | 43 | 533 | ||||
| Transactions with owners in total | 490 | 43 | 533 | ||||
| Shareholders' equity Mar 31, 2012 | 2,100 | 72 | 59 | 8,834 | 0 | 2,029 | 13,094 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
19 (23)
Consolidated Cash Flow Statement, IFRS
| EUR thousand | Jan 1–Mar 31, 2013 | Jan 1–Mar 31, 2012 | Jan 1–Dec 31, 2012 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Operating profit | 424 | -347 | 620 |
| Amendments: | |||
| Depreciations | 160 | 138 | 595 |
| Non-cash transactions | 0 | 43 | 43 |
| Change in working capital: | |||
| Change in trade or other receivables (+/-) | 1,608 | 890 | -905 |
| Change in trade and other payables (+/-) | 106 | 117 | -72 |
| Interests paid (-) | -14 | -2 | -41 |
| Interests received | 2 | 2 | 12 |
| Cash flow from operating activities, total | 2,286 | 841 | 252 |
| Cash flow/investments | |||
| Investment in subsidiaries | 0 | 0 | -1,260 |
| Investments in intangible and tangible assets (-) | -71 | -107 | -199 |
| Cash flow/investments total | -71 | -107 | -1,459 |
| Cash flow/financing | |||
| Payments received from share issue | 0 | 119 | 161 |
| Loans withdrawn | 0 | 0 | 1,325 |
| Loans paid | -256 | 0 | -190 |
| Purchase of own shares (-) | -82 | 0 | -129 |
| Cash flow/financing total | -338 | 119 | 1,167 |
| Change in liquid funds (+/-) | 1,877 | 853 | -40 |
| Liquid funds, opening balance | 656 | 696 | 696 |
| Liquid funds closing balance | 2,533 | 1,549 | 656 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
20 (23)
Consolidated Profit and Loss Statement by Quarter, IFRS
| EUR thousand | Jan 1–Mar 31 2013 | Apr 1–Jun 30 2013 | Jul 1–Sep 30 2013 | Oct 1–Dec 31 2013 | Jan 1–Mar 31 2012 | Apr 1–Jun 30 2012 | Jul 1–Sep 30 2012 | Oct 1–Dec 31 2012 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 5,541 | 3,972 | 3,982 | 4,567 | 6,297 | |||
| Other operating income | 12 | 0 | 0 | 7 | 26 | |||
| Materials (–) | -359 | -429 | -473 | -330 | -459 | |||
| Employee benefits/expenses (–) | -3,853 | -3,142 | -2,813 | -2,921 | -3,959 | |||
| Depreciations (–) | -160 | -138 | -143 | -147 | -166 | |||
| Other operating expenses (–) | -757 | -609 | -803 | -828 | -870 | |||
| Operating profit/loss | 424 | -347 | -251 | 348 | 869 | |||
| Financial income | 2 | 2 | 3 | 2 | 5 | |||
| Financial expenses (–) | -14 | -2 | -3 | -22 | -14 | |||
| Profit/loss before taxes | 412 | -347 | -251 | 328 | 860 | |||
| Income taxes | -102 | 3 | 3 | -104 | -44 | |||
| Profit/loss for the period | 310 | -344 | -248 | 224 | 816 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR®
INTERIM REPORT Q1/2013
21 (23)
Commitments and contingent liabilities
| EUR thousand | Mar 31, 2013 | Mar 31, 2012 | Dec 31, 2012 |
|---|---|---|---|
| Collateral given for own commitments | |||
| Rental guarantees | 205 | 155 | 201 |
| Business mortgages | 2,250 | 1,000 | 2,250 |
| Bank guarantees | 18 | 18 | 18 |
| Other own guarantees | |||
| Lease liabilities | |||
| Current lease liabilities | 95 | 96 | 104 |
| Lease liabilities maturing in 1–5 years | 28 | 90 | 34 |
| Total | 123 | 186 | 138 |
| Rental liabilities | |||
| Current rental liabilities | 640 | 598 | 662 |
| Rental liabilities maturing in 1–5 years | 213 | 697 | 348 |
| Total | 853 | 1,295 | 1,010 |
| Other own guarantees total | 976 | 1,481 | 1,148 |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
22 (23)
Key Figures of the Group, IFRS
| mo. 1–3 /2013 | mo. 1–3 /2012 | Change | mo. 1–12 /2012 | |
|---|---|---|---|---|
| Net sales, EUR thousand | 5,541 | 3,972 | +39.5% | 18,818 |
| Growth of net sales | +39.5% | +0.7% | +9.4% | |
| Operating profit before depreciation and amortization (EBITDA), EUR thousand | 584 | -209 | +379.4% | 1,215 |
| percentage of net sales | 10.5% | -5.3% | 6.5% | |
| Operating profit/loss (EBIT), EUR thousand | 424 | -347 | +222.2% | 620 |
| percentage of net sales | 7.7% | -8.7% | 3.3% | |
| Earnings before taxes, EUR thousand | 412 | -347 | 218.8% | 591 |
| percentage of net sales | 7.4% | -8.7% | 3.1% | |
| Earnings, EUR thousand | 310 | -344 | +190.2% | 449 |
| percentage of net sales | 5.6% | -8.7% | 2.4% | |
| Shareholders' equity, EUR thousand | 13,987 | 13,094 | +6.8% | 13,760 |
| Return on equity* | 8.9% | -10.6% | 3.4% | |
| Return on investment* | 11.3% | -10.6% | 4.5% | |
| Net gearing | -10.0% | -11.8% | 5.4% | |
| Equity ratio | 69.4% | 79.0% | 66.1% | |
| Balance sheet total, EUR thousand | 22,351 | 18,627 | +20.0% | 22,173 |
| Research and development, EUR thousand | 512 | 692 | -26.0% | 2,488 |
| percentage of net sales | 9.2% | 17.4% | 13.2% | |
| Personnel on average during the review period | 198 | 183 | +8.2% | 189 |
| Personnel at the end of the review period | 204 | 184 | +10.9% | 193 |
| Number of shares at the end of the review period | 30,165,900 | 30,165,900 | +0.0% | 30,165,900 |
| Earnings per share (EUR) | 0.0104 | -0.0118 | +188.5% | 0.0150 |
| Shareholders' equity per share (EUR) | 0.470 | 0.434 | +8.4% | 0.460 |
- The percentages for the return on equity and return on investment have been adjusted to correspond with the figures for a 12-month period.
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001
INNOFACTOR
INTERIM REPORT Q1/2013
23 (23)
Largest shareholders
According to the share register maintained by Euroclear Finland Oy, the share ownership of the 20 largest Innofactor Plc shareowners at the end of the review period on March 31, 2013, was as follows: Additionally, on March 31, 2013, Innofactor Plc had a total of 433,000 Innofactor shares in its possession.
| Name | Number of shares | % of share capital |
|---|---|---|
| 1. Ensio Sami | 7,400,000 | 24.52% |
| Ensio Sami | 5,226,240 | 17.32% |
| minor under guardianship | 724,588 | 2.40% |
| minor under guardianship | 724,586 | 2.40% |
| minor under guardianship | 724,586 | 2.40% |
| 2. Tilman Tuomo Tapani | 2,886,777 | 9.57% |
| Tilman Tuomo Tapani | 2,747,492 | 9.11% |
| Mpire Capital Oy | 139,285 | 0.46% |
| 3. Salminen Jyrki Kalle Tapio | 2,747,492 | 9.11% |
| 4. Laiho Rami Tapani | 1,489,888 | 4.94% |
| 5. Linturi Kaija and Risto | 1,367,011 | 4.53% |
| R. Linturi Oyj | 539,707 | 1.79% |
| Linturi Kaija | 440,000 | 1.46% |
| Linturi Risto | 387,304 | 1.28% |
| 6. Mäki Antti-Jussi | 1,310,201 | 4.34% |
| 7. Lampi Mikko Olavi | 1,045,543 | 3.47% |
| 8. Ärje Matias Juhanpoika | 946,278 | 3.14% |
| 9. Luostarinen Juha Markku T | 929,438 | 3.08% |
| 10. Riski Tuomas Mikael | 762,712 | 2.53% |
| 11. Jokinen Klaus Antero | 564,111 | 1.87% |
| 12. Muukkonen Teemu Heikki | 507,468 | 1.68% |
| 13. Kukkonen Heikki-Harri | 374,021 | 1.24% |
| 14. Järvenpää Janne-Olli | 372,804 | 1.24% |
| 15. Laiho Jari Olavi | 270,000 | 0.90% |
| 16. Ementor Norge As | 269,299 | 0.89% |
| 17. Gerdt Aino-Maija | 180,000 | 0.60% |
| 18. Myllys Mikko Juhani | 176,981 | 0.59% |
| 19. Karelsamaa Oy | 147,063 | 0.49% |
| 20. Nurmi Mika Tapio | 139,553 | 0.46% |
Innofactor Plc
Keilaranta 19
FI-02150 Espoo
[email protected]
http://www.innofactor.com
Tel: +358 10 272 9000
Fax: +358 10 272 9001